Markets and Businesses

Thurs, 20th Jan, 2022

Hello and welcome to Markets and Businesses, a magazine
focussed on Angola economic developments.
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The Exchange rate in Angola
One euro is being purchased for kz 668 and sold for kz635 and
one US dollar is purchased for kz592 and sold for kz563.
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Now Brent Crude oil, which is Angola´s reference, one barrel is
being sold for $88.
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Angola economy to grow this year
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The World Bank predicts that Angola's economy will grow 3.1%
this year and that it will slow down slightly to 2.8% in 2023,
according to the Global Economic Outlook, released recently in
Washington.
According to the new estimates, Angola should have emerged
from the economic recession already last year, registering a
growth of 0.4%, which follows five consecutive years of fall in the
Gross Domestic Product, improving, even so, the fall 5.4% in
2020, the worst year in this series. The World Bank does not
specifically address the reasons for Angola's growth,
encompassing this Portuguese-speaking country in the set of
sub-Saharan African economies, and only details the forecast
values for economic growth between 2019 and 2023.
“Production in sub-Saharan Africa grew by an estimated 3.5% in
2021, fueled by a recovery in the price of raw materials and
easing of restrictions” in the context of the Covid-19 pandemic,
reads the report cited by Lusa.
“The recovery remains fragile and insufficient to reverse the
increase in poverty due to the impact of the pandemic, and the
threat of recurrent outbreaks of Covid-19 continues”, which
makes the growth forecast almost a percentage point below the
estimate for 2019 and 2020, it is also pointed out in the
document.
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The government ended the careers of Early Childhood Educator
and Child minder, having, in exchange, created those of Social
Action Assistant and Nurse. The information is contained in the
Social Worker Career Regime, approved a few days ago, during
the 12th ordinary session of the Council of Ministers, chaired by
the President of the Republic, João Lourenço.
According to the communiqué issued at that meeting, this
diploma aims to adapt the aforementioned career to the
legislation in force on the matter. The session of the Council of
Ministers also approved a Presidential Decree creating the
Integrated Care Centers for Children and Adolescents), as well as
the respective regulations. This institution aims to guarantee, in
articulation with the judicial body responsible for juvenile justice,
the care and monitoring of children and adolescents, in an
integrated and harmonious way, with a view to their
reintegration, when they are in conflict with the law or in contact
with the justice system.
On the same occasion, the Council of Ministers approved the
legal regime applicable to fees due for services provided by the
National Directorate of Publicity of the Ministry of
Telecommunications, Information Technologies and Social
Communication, namely for the registration, issuance and
renewal of certificates for the exercise of the advertising activity.
It also approved the regime applicable to fees charged for
services provided by the National School for the Training of
Social Service Technicians, with a view to reinforcing self-
sustainability and maintaining the aforementioned institutions.
In the same session, the body considered a legal diploma
authorizing the extension of the dates of the first oil survey in
the Colorau, Manjericão and Cola development areas, in Block
32, until December 31, 2026.
According to the statement from the Council of Ministers, the
idea is to allow the contractor group of the aforementioned
Block to carry out technical optimization studies, as well as
development works, which will significantly reduce costs and
geological risks and start the production activity of oil more
sustainably.
In terms of foreign policy, the latest session of the Council of
Ministers considered, for subsequent submission to the National
Assembly, the Draft Resolution approving, for ratification,
Angola's accession to the African Trade Insurance Agency. In this
regard, it approved the agreements between Angola and Congo,
on Transfrontier Road and Air transport; between and beyond
their respective territories; General Cooperation Agreement
between Angola and Seychelles; Agreement on the creation of a
Bilateral Commission, signed between Angola and the Republic
of Seychelles.
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The Angolan market needs around 374,000 tonnes of stored
products to ensure immediate price stability, particularly for the
basic food basket, said recently the coordinator of the Angola
Customs Warehouse Management Commission, Eduardo
Machado. Speaking on the "Big Interview" program of the Public
Television of Angola, he said that, in the short term, the country
could replace the import of four products, namely corn, millet,
cassava and salt, which are part of the 11 listed for the Strategic
Food Reserve.
"To overcome all the pressure that the economy has suffered, in
2020 and 2021, Angola had to have an internal productive
system, capable of supplying 37 million people, but
unfortunately, the country is still in the construction phase of
this system", he acknowledged. As soon as the market is
balanced, he added, the acquisition of national products will
begin, as a priority, supported by the non-recurrence of foreign
currency for the purchase of products, and by the promotion of
employment and economic activity.
Eduardo Machado stressed that the perspective is to expand
economic capacity, boost national producers and domestic
industrial production, in addition to increasing employment and
accelerating the economy. The coordinator of the Angola
Customs Warehouse Management Commission, which ensures
the storage and conservation of products, highlighted, by way of
example, the existence of a minimum stock of 18,000 tonnes of
cornmeal.
The food Strategic reserve, he emphasized, will help to reduce
the burden of the 11 products of the basic basket and complete
the products that already exist in the market. "With this
mechanism, the country intends, in advance, to create bases
with benefits to be able to regularize the market, starting with
the rationalization of the formal circuit to regularize the two
thirds of the country's informal economy", he emphasized.
To this end, he continued, the mechanism will be a guaranteed
buyer of this production, that is, producers of maize, millet,
cassava and beans will have alternatives in the flow and sale of
their production. According to Eduardo Machado, if the economy
is robust this naturally forces informal agents to adhere to the
formality of the economy, with the reserve guaranteeing the
flow of surplus products from family farming, as it is the buyer
par excellence and better packaging.
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Endiama ended the 2020 financial year with a positive net result
of 13.38 billion kwanzas, down by 4.22 billion compared to the
same period last year.
According to the 2020 management report and accounts, the
24% decrease compared to the same period in the previous year
is explained by the 149% increase in non-operating costs (impact
of support for Corporate Social Responsibility charges and
provisions for Indirect Credit Liabilities with the commercial
banking).
The document that Angola´s National Paper had access to today
clarifies that despite the reduction in the average price per carat
from US$138 in 2019 to US$131 in 2020, there was an increase in
operating income of 37%, influenced by the special stones found
throughout the exercise. In the period from 2019 to 2020, the
diamond subsector made investments of around US$248 million,
out of which US$174 million in 2019 and US$73 million in 2020.
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The Angolan National Diamond Trading Company has already
completed the process of evaluating expressions of interest,
from national and international institutions, for specialized
acidification services and diamond auctions.
Launched in May 2021, the results of the evaluation process
determined, as the winning companies, First Element, for the
diamond acidification unit, and Trans Atlantic Gems Sales, for
carrying out diamond auctions, representing important services
for the future Angola Diamond Exchange.
According to a note to which ANGOP had access a few hours ago
proposals were received from Angolan companies and
internationally recognized institutions, which operate in markets
such as South Africa, Belgium, United Arab Emirates, United
States of America and Israel.
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Angola exported, from January to November 2021, a production
of ornamental stones estimated at 69.2 thousand cubic meters,
having generated 23.5 million US dollars, according to data
released recently, in Luanda, by the Secretary of State for the
Mineral Resources.
Jânio Correa Víctor attended the biweekly briefing of the
Ministry of Economy and Planning to present the balance on the
production of ornamental stones in the period from 2017 to
2021, within the framework of the Production Support Program,
Export Diversification and Import Substitution.
In 2020, he said, the sector recorded revenue of US$21.2 million,
with the export of 83,900 cubic meters. In 2019, given the Covid-
19 scenario in the world, exports were significantly affected, with
revenue of only US$6.9 million, compared to the sale abroad of
44,900 cubic meters of ornamental rocks. "At this time, we had
the material, but there were no orders from buyers", he
stressed.
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The Luanda-Bengo Special Economic Zone is now part of the
World Free Zones Organization, an international non-profit
organization, the Directorate of this undertaking announced
recently.
In a note to which ANGOP had access, the ZEE informs that
the referred organization works as a global association for
all interested parties in the free zones, providing all types
of technical and administrative knowledge.

"As a member of the organization, in addition to greater

international visibility, ZEE will benefit from several support
services and educational tools (...)", says the institution in
the statement.
According to the document, the benefits include access to
information on markets and potential investors, research in
the industrial sector, operational and administrative
support services, high-level training and education,
networking services and event organization.

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The government cashed in 850 billion kwanzas over three years

through the implementation of the Privatization Program and
sold 64 assets between 2020 and 2021.
The data were released a few hours ago by the Secretary of State
for Finance and Treasury, Ottoniel dos Santos, stating that of the
total amount got, only 469 billion kwanzas was received, which is
distributed in three categories.
"One, which represents 26 billion kwanzas that was paid to the
State, the second, 47 billion kwanzas was paid to Sonangol and
the third, 396 billion kwanzas, represents the amount involved in
the sale of the company Puma Energy and represents the
exchange of shares, it is the value that these shares have and
that are currently in the care of the Sonangol group”, explained
the official.
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Now; our colleague, Daniel Quequexi is going to talk to
economist Hernany Luís about the performance of Angolan
economy this year.
Peça …………………………… Hernany Luís
That was our colleague, Daniel Quequexi, having a conversation
with economist Hernany Luís about the performance of Angolan
economy this year.
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That´s all for Markets and Businesses …..